General Equilibrium analysis focuses on the question of how a market economy allocates resources. This analysis builds on the theories of consumer and producer behavior developed in the study of microeconomics by examining how the interactions of economic agents determine equilibrium in the markets for all goods simultaneously. The starting point for the analysis is the canonical model of general equilibrium known as the Arrow-Debreu model. We will spend much of the course formulating this model, examining its properties, demonstrating existence of equilibrium, and examining properties of the equilibrium prices and allocations. We will then look at extensions of the model, and at drawbacks of the model. Lectures will provide the primary development of the theory.
Lecture: 100min/wk and Recitation: 50min/wk